The Indian rupee further rise at the open on Thursday, boosted by the pullback in US Treasury yields after an initial rise on sticky inflation data, with traders still pricing in limited chances of a Federal Reserve rate hike in October. The focus is squarely on the Reserve Bank of India and how far it is willing to go to shore up the rupee. The central bank has curbed dollar demand through a series of measures, following that up with direct dollar sales. The message from the RBI is very obvious now about arresting the currency's slide. The dollar slipped from an 18-month peak on Thursday despite hotter-than-expected inflation data, as cautious remarks from Federal Reserve officials and a pullback in Treasury yields led traders to scale back expectations of an October rate hike. US Treasury yields surged initially after US inflation rose more than expected in September, and traders sharply increased bets on a Fed rate hike this month. The move, however, reversed, with analysts attributing the pullback to risk aversion. Morgan Stanley further pointed to demand from real-money and fast-money investors as the reason behind the pullback in yields. Against the dollar, the euro bounced 0.3% from an 18-month low to trade at $1.1187. Sterling strengthened 0.2% to $1.3224, recovering from a 13-month low. The dollar index , which measures the US currency against a basket of peers, was down 0.1% at 102.06. It has given back most of the gains it made after Wednesday's hot inflation reading pushed it to an 18-month high. The focus will now shift to US producer price and retail sales data later in the day, with the former also expected to show a jump in business costs last month. The Japanese yen was up around 0.3% at 157.82. Sterling rose to its strongest level since June 2025 versus the euro, which was last trading at 84.34 pence. The euro has fallen around 2% against the pound in the last three weeks alone, as elevated oil prices and concerns about France's public finances weigh on the single currency. Against the dollar, sterling was nearly flat at $1.3262 by 1109 GMT, having touched a one-week high of $1.3285 earlier in the session. Gold rose more than 1% on Thursday, rebounding from a one-week low hit in the previous session as the US dollar eased, while investors assessed the likelihood of a Federal Reserve interest rate increase this month after a hot inflation report. Spot gold was up 1.3% at $4,158.63 per ounce, as of 0257 GMT, after hitting its lowest since October 7 on Wednesday. US gold futures for December delivery rose 1.8% to $4,180.00 per ounce. Among other metals, spot silver gained 1.1% to $56.26 per ounce, platinum rose 0.3% to $1,611.15 and palladium climbed 1.3% to $1,107.83. www.eforexindia.com......